Tolkien represents Good as being unable to comprehend Evil as well. Manwe was unable to understand Melkor and the changes that had happened in Melkor, which is why Melkor got off so lightly with the Chaining.

That's true. But Evil's blindness seems to be more consistent.

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Originally Posted by Morthoron

Tolkien played with the idea of Sauron's single-mindedness, his monomania, leading to his grand miscalculation. Tolkien pictured Sauron as a single, lidless eye who was blind to all else but the One Ring, In many ways, Sauron was just as addicted to the Ring as Gollum or any other ringbearer, intent upon its reacquisition, much to his own folly.

I think that's something else Sauron didn't count on when hatching the rings plot: that he himself would be consumed by lust for his own One Ring. Why would that be so? The power and will it contained was his own. Was it turned into an external force when imparted into the Ring, independent of his own fea?